You have the option of consuming one cup of coffee or two donuts ...

[abern]

You have the option of consuming one cup of coffee or two donuts or three oranges. You picked the cup of coffee. Therefore the opportunity cost of this cup of coffee is
 
  A) the price of the cup of coffee.
  B) the difference in the prices of these three products.
  C) the price of the donuts as they are usually consumed with coffee.
  D) either the donuts or the oranges, whichever you like more.

Question 2

A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of
 
  A) cynical behavior in modern democracies.
  B) failing to consider the alternatives available to the government.
  C) a concern that people are not rational when they make decisions.
  D) using incentives to alter behavior.

[mbcrismon]

Answer to Question 1

D

Answer to Question 2

D

[abern]

Gracias!

[triiciiaa]

Excellent